Germany and Norway place firm order for fleet of five NATO-owned Airbus A330 MRTT tankers

Madrid, 25 September 2017 – Airbus Defence and Space has received a firm order for five Airbus A330 MRTT Multi Role Tanker Transports from Europe’s organisation for the management of cooperative armament programmes – OCCAR – on behalf of NATO Support & Procurement Agency (NSPA) and funded by Germany and Norway.

The order follows the announcement on 29 June of a Memorandum of Understanding under which the two nations would join Netherlands and Luxembourg in the European/NATO Multinational Multi-Role Tanker Transport Fleet (MMF) programme.

A contract amendment signed at the OCCAR headquarters in Bonn, Germany today adds five aircraft to the two previously ordered by Netherlands and Luxembourg and includes four additional options to enable other nations to join the grouping. It includes two years of initial support.

The programme is funded by the four nations who will have the exclusive right to operate these NATO–owned aircraft in a pooling arrangement. The aircraft will be configured for in-flight refuelling, the transport of passengers and cargo, and medical evacuation flights.

The first two aircraft have already been ordered to be delivered from Airbus Defence and Space’s tanker conversion line at Getafe near Madrid and all seven are expected to be handed over between 2020 and 2022.

The European Defence Agency (EDA) initiated the MMF programme in 2012. OCCAR manages the MMF acquisition phase as Contract Executing Agent on behalf of NSPA. Following the acquisition phase, NSPA will be responsible for the complete life-cycle management of the fleet.

Airbus Defence and Space Head of Military Aircraft Fernando Alonso said: “This new order further demonstrates the A330 MRTT’s position as the world’s premier tanker/transport aircraft. But it also firmly establishes the MMF as one of Europe’s most important collaborative programmes and a model for the future European defence projects which are expected to be launched in the coming years.”

Malaysia to lease six ex-Airberlin Airbus A330-200s

Malaysia Airlines has provided further clarification on its fleet strategy, following its previous updates on the matter.

Malaysia Airlines fleet strategy is a key component of the ongoing five-year 12-point MAS Recovery Plan (MRP) unveiled on August 29, 2014, which calls for the resetting of the airline’s operating business model towards a competitive cost position, with a focus on the network and revenue management.

In his presentation to media, Malaysia Airlines Chief Executive Officer Peter Bellew provided an in-depth update on Malaysia Airlines’ fleet strategy, as well as its business performance, products and services, among others.

As emphasized in its statement on September 21, 2017, Malaysia Airlines has a firm order of 25 Boeing 737 aircraft and options on other types of aircraft, including both new and used aircraft from Boeing and Airbus. Overall, this strategy will provide Malaysia Airlines with the flexibility in deciding which aircraft suits its operational environment best moving forward.

In line with this, Bellew also announced that Malaysia Airlines has signed a Letter of Intent (LOI) for the lease of six (6) second hand Airbus A330-200, as replacement for six narrow body Boeing 737 that are being returned to lessors . The A330-200 aircraft, expected to begin arriving from February 2018, will allow the airline to bridge the next generation wide-body aircraft orders. The LOI with AerCap, the lessor of the aircraft, was signed today.

As per the LOI, the A330-200s will be leased for six years from 2018 to 2023 and will mainly be used to up-gauge several high-demand medium haul routes. The aircraft features are very similar to Malaysia Airlines’ current A330-300 fleet with exactly the same Pratt & Whitney engines. Malaysia Airlines is negotiating a maintenance support program with Pratt & Whitney. The six aircraft will have a two class configuration, 287 seats with 19 fully lie flat Business Class seats, brand new IFE on all seats and WiFi.

Paris: Turkish Airlines has begun talks with Airbus to buy up to 40 A350 jetliners worth $12.4 billion at list prices, hours after outlining a similar deal with rival planemaker Boeing, people familiar with the airline said on Friday.

The carrier's first significant moves on expansion since last year's failed Turkish coup appear designed to signal a rebound coinciding with President Recep Tayyip Erdogan's visit to the United Nations, though no deals have yet been finalised.

In New York, where Erdogan this week attended the UN General Assembly, Boeing said on Thursday Turkish Airlines (THY) intended to buy 40 of its 787-9 Dreamliner jets worth $11 billion at list prices.

Boeing and the Turkish government also announced a joint initiative to support the Turkish aerospace industry.

"During the talks to finalise the order, we are strictly evaluating the $1 billion worth business volume for the local Turkish supplier industry," Turkish Airlines Chairman Ilker Aycı said in a statement on Friday.

Hours after the Boeing announcement, attention switched behind the scenes to Boeing's arch-rival Airbus as Turkish Airlines also sought prices from the European planemaker for up to 40 wide-body A350-900 jets, the people said.

It was not immediately clear whether this might lead to a separate order or clash with the 787 talks or even be just a case of THY checking Boeing's prices against Airbus's. But THY typically maintains a balanced fleet from the rival planemakers and analysts said the diplomatic setting and wider industrial agreement suggested the Boeing deal was likely to go ahead.

That deal came as US President Donald Trump praised Erdogan as a friend, despite tensions between the two countries over Turkish security officials involved in street fighting with protesters during a visit to Washington in May.

But the timing and nature of the US deal were unexpected. THY had previously expressed interest in the larger 777X.

Both Boeing and Airbus declined to comment on discussions with the airline. THY was not available for comment.

THY is growing quickly to compete with Gulf carriers but diplomats say it also has a history of making political points with airplane deals as well as using new routes to project Turkey's 'soft power' abroad. In the past, it has tied abortive talks to buy the Airbus A380 to European Union accession talks, according to industry sources and cables released by Wikileaks.

Industry sources said the latest separate discussions with Boeing and Airbus appeared to have been accelerated to fit this week's diplomatic schedule, with no visible tendering process.

"There are politics involved," one industry source said.

Aircraft negotiations often take months, even years, and are usually kept under wraps until there is at least a preliminary agreement. Follow-up talks with each side may take some time.

"Turkish Airlines intends to buy 40 787-9 aircraft. However, it has not actually ordered the aircraft, so we’re not sure that this is really an announcement at all," Robert Stallard, aerospace analyst at Vertical Research Partners, said in a note.

THY's passenger numbers were hit by last year's coup attempt, as well as security concerns and tensions with Russia, prompting the airline to postpone Airbus and Boeing deliveries. Passenger numbers grew 6.1 percent between January and August.

Friday, 22 September 2017

New Airbus A330 Completion & Delivery Centre Opens Up in China

The first Airbus wide-body completion and delivery centre outside Europe has been inaugurated in Tianjin, China, complementing an already broad and worldwide footprint with assembly lines in Toulouse, Hamburg and Mobile.

The new completion center is built at the same location of the manufacturer’s current Tianjin assembly line for single-aisle A319 and A320 aircraft. With this location, Airbus will be catering the largest A330 customers in the world.

The construction of this Completion and Delivery Centre (C&DC) began in March 2016 with a ground-breaking ceremony hosted by Tianjin’s Vice-Mayor, Duan Chunhua, National Development and Reform Commission Vice-Minister, Lin Nianxiu, Airbus President and CEO Fabrice Bregier and Aviation Industry Corporation of China president Lin Zuoming.

The project is part of a joint venture between Airbus, Tianjin Free Trade Zone, and Aviation Industry Corporation of China.

This A330 C&DC will host cabin installation, aircraft painting, and production flight test activities, as well as customer flight acceptance and aircraft deliveries.

According to a note released by Airbus, over 150 Chinese Airbus C&DC staff members were trained in Toulouse to guarantee full compatibility with the manufacturer’s guidelines at the new China-based site. It is expected to see a further expansion of 250 workers that will strengthen this new operations center in China.

“The inauguration of our A330 C&DC in Tianjin, together with the first of many deliveries, marks a new milestone for Airbus’ international footprint and underlines the strong spirit of cooperation with our Chinese partners,” said Fabrice Brégier, Airbus COO and President of Commercial Aircraft.

“Wide-body aircraft completed in China is an Airbus and an industry first, which demonstrates our mutual commitment to a strong and growing Chinese aviation sector.”

EMPTY CABINS, UNPAINTED AIRCRAFT TRANSFORMED

The US$240 million center will receive empty, unpainted A330 aircraft previously assembled in France, which will then be transformed into final products as ordered by the customers.

The C&DC features a paint shop, a weighing hangar, and one main hangar with three aircraft positions, covering an area of 16,800m2. Its current capacity is set to deliver two aircraft per month by early 2019.

The inaugural ceremony was paired with an official delivery of the first European and Chinese-made A330 to Tianjin Airlines. The aircraft was assembled and equipped in Toulouse by Chinese and European staff and is powered by Rolls-Royce Trent 700 engines. The airliner is equipped with 260 seats in a two-class configuration.

FORECASTING THE CHINESE MARKET

According to Airbus, the A330-200/300 is the most popular wide-body aircraft in China. The manufacturer reports that there are about 200 A330s that are currently operated by nine Chinese airlines.

Airbus claims that it has a strong 61% market share in the long-haul sector in the country.

According to Eric Chen, President at Airbus China, the country’s airlines will need about 6,000 airliners over the next two decades, specifically for large carriers as a result of the increasing passenger traffic in China, where an expansion of 14% per year is forecasted.

Manufacturing competition in the region is also alive, with Chinese manufacturer COMAC launching its medium-haul C919, and Boeing opening up a new 737 assembly next year.

By the end of August 2017, the in-service Airbus fleet with Chinese carriers includes 1,484 aircraft, of which 1,282 belong to the A320 family, and 202 to the A330 family. To date, the A330 family has 1,700 orders.

AIRBUS WINS A321NEO ORDER FROM LA COMPAGNIE

The all-business class, luxury carrier La Compagnie, has announced an order for two Airbus A321neo set to replace the airline’s aging Boeing 757-200s on its Transatlantic Paris (CDG) – Newark (EWR) flights. The new Airbus airliners are expected to be delivered by 2019.

The premium carrier is the only survivor of a Premium Class-only craze that began in the early 2000s, which saw a flurry of startups and quick failures, including Maxjet (MY, 2003-2007), Eos (E0, 2004-2008), and Silverjet (Y7, 2006-2008).

Today, La Compagnie operates two Boeing 757-200s fitted with just 74 seats on the premium Paris-New York route.

AIRBUS TAKES THE WIN

Back in January, the airline’s co-founder and former CEO, Frantz Yvelin, told Airways that the aging Boeing 757s were soon due for replacement and that both Boeing 737-9 MAX and the Airbus A321neo were being contemplated as candidates.

“We don’t want to alter our business model or think ‘too big’,” explained the CEO. “So we’ll remain with single-aisle aircraft with a size similar to the 757,” he said.

Yvelin said La Compagnie would be “making a decision within months and in a couple of years we’ll have a last-generation fleet in the air.”

After today’s announcement, however, it’s clear that Airbus takes the win with its A321neo, the model that has ripped a large share of the middle of the market (MoM) segment from Boeing. The A321neo remains as the best-selling MoM aircraft in history.

As far as Boeing is concerned, failing to find a proper replacement for its successful Boeing 757 program continues to pay its toll by giving away business to its European counterpart.

THE ORIGINS OF LA COMPAGNIE

It took four years to launch this boutique airline. Frantz Yvelin, the co-founder and former CEO of La Compagnie, told Airways “The idea of a new model of Premium Class came to me during a flight from the U.S. to Europe back in 2005,” he said.

“That evening, I found myself stuck in the middle of the central row of seats aboard a wide-body airliner for what were going to be 11 painful hours. Before takeoff, I asked one of the flight attendants if I could be upgraded to Business Class and she replied that, for €4,000 (US$4,400), she could find me a seat up front.”

“That’s when I started to reason about a model of the cabin that could be both comfortable and affordable. A sort of ‘democratic Business Class’,” he revealed.

Yvelin and his new business partner, former Swissair and Jet Airways COO Peter Luethi, raised €62 million (US$69 million) and in October 2013 officially created La Compagnie.

La Compagnie dry-leased two Boeing 757-200s; one from Icelandair Group and the other through lessor Aercap. The cabins are arranged in a 2-2 layout.

The seats, designed and manufactured by Contour, offered 62in pitch and seat-recline of 155 degrees. Flight entertainment was carried on 12.2in screen Samsung Galaxy tablets, and the menus were developed by Michelin-starred chef Christophe Langrèe.

LIE FLAT IN SIGHT

Yvelin told Airways that, “we have reasoned about the possibility of offering lie-flat-180° reclining seats, but that would require more space for each row of seats and would reduce capacity by approximately 20%. Consequently, ticket price would be increased by 20%, and that would be the end of La Compagnie and its ‘democratic Business Class’.”

The cabin inside a La Compagnie Boeing 757. (Credits: La Compagnie)

However, the A321neos will be fitted with fully flat seats, an all-new entertainment system, and Wi-Fi connectivity—a major upgrade to the current hard product.

La Compagnie hasn’t revealed further details on the new hard product’s branding and configuration.

OPTIMIZING LA COMPAGNIE

In December 2016, La Compagnie merged with French Low-Cost Carrier, XL Airways. Both Paris-based carriers now formed the new XL Airways-La Compagnie Group, led by CEO Laurent Magnin.

Magnin said in a statement, “Since the merger with XL Airways, less than a year ago, we are working on optimizing La Compagnie’s performance. The acquisition of these A321neo aircraft, more modern and efficient than the current Boeing 757, was essential to accelerate the company’s development and enable us to enter the market on a long-term basis.”

While La Compagnie will continue to focus on the premium Paris-New York all-business class route, XL Airways will carry on with its high-density Airbus A330 fleet flying to more than 10 long-haul destinations in North America, the Caribbean, and the Indian Ocean.

Expect an update as soon as the airline reveals details on the configuration and hard product branding of their new Airbus A321neos.